Marks & Spencer was hit with a downgrade as Deutsche Bank analysts warned the retailer would suffer from the cost of living crisis. Analysts warned M&S would be harmed by ‘trading down’ as consumers opted for cheaper options amid a squeeze on household budgets, piling pressure on the company’s profit margins in its food business and weakening demand for clothing. (The Daily Mail)

Marks & Spencer holding steady despite downgrade, writes The Times’ markets report. “Some analysts argue that weaker consumer confidence will more than offset the benefits from the best efforts of M&S… As it was, the shares held up rather well considering the sell-off engulfing wider stock markets.” (The Times £)

Asda has become the latest supermarket to engage in the most recent industry “price war” with an announcement that it will reduce the prices of dozens of products (The Times £). Morrisons and Asda have revealed a string of price cuts as the supermarkets position themselves as the cheapest option during the cost of living crisis (The Telegraph). British supermarkets are trying to preserve their market share, and the big four – Tesco, Sainsbury’s, Asda and Morrisons – are watching the growing competition from the German discounters Aldi and Lidl (The Guardian).

One of Just Eat Takeaway’s biggest shareholders has accused directors of presiding over a “complete loss of trust” as it called on fellow investors to join a protest vote over “misleading financial disclosures” (The Times £). Just Eat Takeaway’s largest independent shareholder has said investors should vote to fire the takeaway food website’s supervisory board and chief financial officer amid a steady decline in its market value (The Guardian). Bosses at the food delivery company were accused of destroying £13.5bn of value in the business by US-based fund manager Cat Rock Capital (The Daily Mail)

Costa Coffee’s post-pandemic recovery has boosted its American owner after the chain reopened British cafés and continued to expand (The Times £).

Shares in Coca-Cola are fizzing faster than a shaken-up bottle of its namesake drink, writes the FT’s Lex columns. “Consumer staples — or companies that sell everyday household goods such as soft drinks, cereal and dish soap — are inherently defensive. They are popular during market turmoil because of the steady nature of their businesses and relatively hefty dividend yields.” (The Financial Times £)

McColl’s Retail Group warned today that a potential rescue refinancing was likely to wipe out ordinary shareholders in the company (The Times £). The company is negotiating with lenders over a £97million debt pile it cannot afford to service and said even a successful outcome would result in ordinary shares holding ‘little or no value’ (The Daily Mail).

Burger King UK kept itself in the shop window for a possible £600m flotation as it reported strong full-year results and ambitious growth plans (The Times £). Burger King says it wants to open 200 more restaurants in the UK over the next five years (Sky News).

Investors managing $3tn in assets are pushing food multinationals Nestlé, Danone, Kraft Heinz and Kellogg to set out new disclosures and targets on health after a successful campaign for changes at Unilever. (The Financial Times £)

Sales have soared at English winemaker Chapel Down, as a growing number of Britons swap champagne for sparkling wines produced in the UK (The Financial Times £). Britain’s biggest winemaker expects to maintain the growth rate of its sparkling wines, despite one of the most challenging harvests of recent times (The Times £). England’s biggest winery Chapel Down has returned to profit as it sold a record 1.5million bottles of wine and spirits last year (The Daily Mail).

Topics