Sainsbury's warns suppliers to absorb duty hike

By Ewan Turney

- Last updated on GMT

Related tags: Duty hikes, Management, Sainsbury

Sainsbury's: warning to suppliers
Sainsbury's: warning to suppliers
Sainsbury's has warned drinks suppliers to absorb duty hikes or face being removed from its shelves. The supermarket giant reportedly wrote to all...

Sainsbury's has warned drinks suppliers to absorb duty hikes or face being removed from its shelves.

The supermarket giant reportedly wrote to all alcohol suppliers before the budget.

An email seen by the Sunday Telegraph​ warned companies who were "not planning to absorb" the duty increases to send Sainsbury's a "mitigation plan for dealing with it" such as additional promotional support or delayed implementation of the increase.

The email said: "I will remind you all that my biggest challenge this year will be two percentage points margin growth and so this will be at the heart of every decision regarding duty and the range."

Mike Coupe, Sainsbury's trading director, told the paper: "It is always our aim to offer customers the best value at the fairest prices. Any situation that could result in higher prices will invariably lead to discussion as to how they can be avoided in the interests of our customers. We have long-term relationships with our suppliers."

Related topics: Legislation

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