ARE TESCO'S ALCOHOL ISSUES A MERE PRETENCE?

Tesco has announced that it wants to discuss the idea of a new legislation to guarantee that alcoholic beverages are consumed responsibly. Launching itself and the government onto the front pages of newspapers, Tesco are beckoning ministers to initiate the introduction of higher taxes on alcohol.

The ethics behind this move seem a responsible approach by the company. But again it’s the ‘chicken or the egg’ scenario… isn’t it the supermarket chains faults that alcohol prices are so low in the first place, as they use alcohol promotions and cheap booze to lure customers through their doors? Perhaps if they weren’t so caught up in winning the gold price in the ‘checkout’ war, then perhaps we would not be in this situation in the first place.

Sir Terry Leahy has already spoken to Gordon Brown and assured them they would receive Tesco’s full cooperation, in their plight to tackle underage drinking and anti-social behaviour on the nations streets. However, Tesco have said they are not prepared to stand alone on the matter without the backing of other supermarkets, ‘to avoid retailers falling foul of competition legislation which prevents discussion of prices between businesses.’ http://www.tescocorporate.com/page.aspx?pointerid=A0B5BACF8D334659BDD568A44B8DD27E
Tesco argue that them alone increasing the price of alcoholic beverages would not end the binge drinking culture as customers will just go elsewhere to purchase the products. Indeed this could be seen as a fair point.

As a company Tesco already have a ‘Think 21’ policy in place, which requires individuals who appear to be under the age of 21 to produce identification proving they are legally obliged to buy alcohol. They have also joined in partnership with Diageo, a consumer goods company designed to advise consumers about responsible drinking, and compliment the governments ‘Know Your Limits’ campaign.
Having visited the Diageo website (http://www.diageo.com/en-row/homepage.htm) whilst conducting research for this blog, I found it to be dull and lacking in the desired information.

So, to what level are Tesco really prepared to go without the backing of their competition. Will Tesco’s ethical approach prove a transparent illusion when faced with the choice of moral high ground or financial profit, or could the chain pleasantly surprise?

'EVERY LITTLE LIE'

‘As life has become busier and more complex, and living costs more expensive, Tesco has helped make shopping simpler, more convenient and affordable to customers.’

http://www.tescocorporate.com/page.aspx?pointerid=22492B1EE56448CDB88FAD501D742BCB

However this is a contradiction in itself, as only last month newspapers and financial analysts announced that an average families food bill has risen by 12 per cent in the last year, adding as much as £750 to the annual bill when purchasing products from three of the biggest supermarket chains- Tesco included.
Granted, they say they have:

1. Launched a Fruit and Veg Pledge - that would offer at least five fresh fruit and vegetable products at half price every week during the whole of the year.

2. Extended the range of whole foods to include an even wider choice of pulses, beans, dried fruit and nuts, breads, oils, cereal bars, breakfast cereals and cooking oils.

3. Made organic products more affordable. Selling them alongside the standard ranges, on the same shelves, instead of in a separate section.

4. Offered a range of Healthy Living non-food fitness equipment such as skipping ropes, endometers, exercise bikes and rowing machines to make keeping fit more affordable.
http://www.tescocorporate.com/page.aspx?pointerid=22492B1EE56448CDB88FAD501D742BCB

But at the cost of other weekly household items rising, to counter balance the discounted produce. So in theory the consumer doesn’t actually save money; even though they believe they are not digging as deeply into their pockets, the consumer is not actually saving money. Which raises the issue once again that the company are not being entirely truthful with their often loyal customers. Their promotions are profit driven rather than aimed at looking after the welfare of Tesco customers.

DOMESTIC GODDESS?...

Britain’s original domestic goddess, Delia Smith, launched a scathing attack on Hugh Fearnley Whittingstall and Jamie Oliver arguing that ‘BATTERY CHICKENS ARE NECESSARY TO FEED POOR FAMILIES’… http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=514633&in_page_id=1770&ICO=NEWS&ICL=TOPART
One can’t help feeling slightly sceptical, as the ‘queen of TV cookery’ jumps in to defend Tesco in their decision. Could it be that behind the scenes there is a cleverly disguised agreement between the two parties? Smith is, after all, renowned for her ability to shift products off the shelves. Marks and Spencer are one of the first retailers to admit to that. Her judgment regarding food products is highly regarded within much of Tesco’s target audience. Or could it be a mere publicity stunt on her behalf to publicise her new cookery book, How to Cheat at Cooking?
Indeed, could this new title from the queen of the kitchen include recipes using the aforementioned £1.99 chicken, ready for basting and roasting? Her excuse for her involvement was that “we have got to make sure everybody gets enough nutritious food to eat in the first place.” This seems a rather clumsy excuse, as cheap foods aren’t normally her speciality. Smith advises people to buy ‘cheat’ products, such as Aunt Bessie’s ready made mashed potato, which it has to be said certainly costs more than a couple of raw potatoes. Therefore her reasoning doesn’t exactly tie in with her defence.

JAMIE OLIVER CLUCKS TO FARMERS DEFENCE

TV chef, Jamie Oliver joined the heated debate about the supermarkets use of cheap, battery-farmed chickens today, in a defiant move against the UK’s rocketing supermarket chains.
Oliver is angry that despite his views, and those of fellow chef Hugh Fearnley Whittingstall’s shown in his documentary, Tesco have announced this reduction in the price of their factory farmed chickens, as statistics had already shown that the public had already changed their habits and turned to buying free-range chicken. Arguably a good result for both chicken and farmer.
Despite being paid a reported £1.2 billion a year by rival supermarket chain Sainsburys, for being the face of their brand, he slated ALL the supermarket giants for their lack of enthusiasm in supporting this campaign, adding “The fact that your PR department hasn’t even got the confidence to turn up and talk about what you do for the millions of people who come through your doors each week… How dare they?” http://www.mirror.co.uk/news/topstories/2008/01/07/jamie-oliver-s-chicken-crusade-89520-20277197/
THE DEBATE CONTINUES...

SAVE OUR FARMERS

Whichever way Tesco twist the facts or spin the yarn, there is no denying that the personal welfare or financial security of the farmers who supply products to the leading supermarket chains feature high up on their lists of priorities. Tesco openly declared on their website, http://www.tescocorporate.com/ that ‘2007 was a challenging year for many UK farmers, with continued increases in the costs of feed and energy, and … changes to subsidy payments.’
SO WHY, WE ASK, at the start of 2008 do you then announce that you have cut the price of chicken?
It’s not like Tesco are short of a penny or two, they had just announced 3 weeks earlier a ‘STRONG GROWTH’ from their Christmas and New Year Trading Statement, disclosing a sales increase of 12.8% in the weeks leading up to the festive period. This on top of last years recorded annual profit of approximately £2.5 billion. So why are farmers being under paid for their services to Britain’s largest supermarket chain?

PRICE CHECKS CONTINUED...

Last year Tesco spent £4 million on a single campaign that they hoped would propel them into the public domain, at the forefront of the supermarket price war. The advert centred on independent price checks on 10,000 products, which were then compared to those of other supermarket giants such as Asda and Sainsburys. The advert showed that, inevitably, Tesco came out the cheapest.
So does Tesco's slogan 'EVERY LITTLE HELPS' really imply that they care about the welfare of their customers, or does every little help increase their stock market power?

'EVERY LITTLE HELPS' or does it?

Does every little help?
What did Tesco really gain from announcing the ‘chick-out’ war when they did?
According to Tesco’s Media Director, Jonathan Church, Tesco ‘have been working hard for a while to increase the amount of higher welfare chicken we sell and the recent debate over chickens in the media has helped raise awareness of the choice available to customers.’
It is questionable as to whether Hugh Fearnley Whittingstall’s Chicken Run documentary, which aired on Channel 4, fanned the flames of the debate, pressurising Tesco into publishing a press release on 6th February 2008 titled ‘CHICKEN TO SUIT EVERY CUSTOMER.’ http://www.tescocorporate.com/page.aspx?pointerid=509EDB3F29DA4B7293853EB49E820146
The programme was the beginning of a public awareness campaign, designed to inform the general public as to the handling of intensively reared chickens, and encourage consumers to think about purchasing free-range chickens as a healthier and conscious free alternative.In the same press release, Tesco announced that ‘this lower price will mean families can sit down to roast chicken and all the trimmings for less than one pound per person.’ Just how genuine this statement is again could be question with Tesco continuing that, ‘consumers have had a tough start to the year will mortgage worries, energy price rises and inflation creeping into some areas of household spending. We are determined to help by keeping the cost of the family shop down.’ Both statements materialise, as likely deflection tools set as a defence mechanism ready in waiting to justify their announcement and spin any bad press they could potentially receive. Bad press that could not only see arched rivals Asda reign victorious in the checkout war.

SUPERMARKET ‘CHICK- OUT’ WAR!

As the supermarket giant Tesco announces it has slashed the price of its chickens to £1.99, a ‘chick-out’ war has erupted between Tesco and archrivals Asda.

The checkout war has hit new heights ending an uneasy truce between the two competitors, who have been fighting for our custom for almost a decade.

The latest price cut to unravel through the media highlights Tesco’s choice to drop the price of its chickens by almost 40 per cent. The decision comes less than 6 months after Tesco’s Chief Executive, Sir Terry Leahy, increased their poultry prices by 4 per cent. Tesco were optimistic that this marketing ploy would ensure customer loyalty, assure the promise of quality of produce, pledge support and offer a fair deal for farmers and ensure humane farming methods are maintained. Publicly criticising Asda for reducing their poultry prices by 22 per cent, proclaiming they would not be able to ensure the welfare of farmers whilst retailing poultry at such a low price, Leahy added: 'The link between diet and health… local and fair trade, is also not only about affluent customers. The growth in the proportion of our customers buying organics is fastest among less affluent customers. This could be a big long-term positive for the industry.'
Sadly it hasn’t taken the supermarket giant long to disregard the promise of quality of produce and the livelihoods of farmers, in place of Tesco’s profits by discounting the produce in order to lure customers away from the competition, and in through their own doors, reminding customers that ‘Every Little Helps’.

So are Tesco an ethical and socially responsible corporation or could the rise of the £1.99 chicken herald Tesco’s fall from grace, as the supermarket giant declares the ‘Chick-out’ war.

Compassion In World Farming (CIWF) Director, Dr Lesley Lambert, said: "£1.99 doesn't reflect the real price of producing a chicken. At the moment, farmers make only 2p per chicken, so this will push them to the limit." http://www.independent.co.uk/news/uk/this-britain/tesco-hits-a-new-low-with-arrival-of-the-163199-chicken-778672.html

Tesco’s argument in return is that they are providing lower income families with a chance to purchase poultry, which in turn enables them to eat a healthy, substantial meal. After all, in the words of the store’s famous slogan, ‘every little helps’. So whilst they are attempting to be ethical and socially responsible to one section of the population, Tesco are at the same time removing the bread and water from the mouths of the farmers and their families, who not only produce the poultry for a pittance but provide the supermarket with cheap products to sell.

SAVE OUR FARMERS WE CRY.