Client Newswrap: Prince of Wales’ sales slump and Tesco launches ‘jumble sale’

Brands
Health warnings on alcoholic drinks could become compulsory under plans announced by the government today. If the proposals go ahead, drinks packaging would feature cigarette-style warnings on the effects of alcohol alongside the logo of campaign group Drink Aware.

A group of British farmers have unveiled plans to invest £50m to create the largest dairy herd in the UK. Director of cheese maker Parkham Farms Peter Willes and farmers David Barnes and Robert Howard have submitted planning permission for a herd of 8,100 cows on a 4,000-acre plot near Lincoln. The new operation, Nocton Dairies, is aiming to produce 80m litres of milk a year.

Smoking industry giant Imperial Tobacco has called for a judicial review into the legality of a ban on tobacco vending machines. Sinclair Collis, the group’s vending machine arm, has asked for sections of the Health Act 2009 to be reviewed, in a process likely to last for several months.

The Prince of Wales’ organic food business Duchy Originals has posted a loss of £3.2m as sales almost halved to £2.2m in the 12 months to March 31 2009. The brand, which was hit by a nosedive in sales of organic goods during the recession, was licensed to Waitrose last September, giving the retailer UK rights to the sale and manufacture of Duchy Original products.

Diageo has followed Unilever in warning the government that it could quit the UK if taxes continue to rise. Last week, Unilever chief executive Paul Polman said that the company would consider moving its headquarters abroad if UK taxes became “non-competitive”. Later in the week, Diageo chief executive Paul Walsh echoed the comments, saying: “We have no plans to relocate at this point in time, but the government should not take us or any other multinational company for granted.”

Retailers
Sainsbury’s is mounting a major push of its sweet treats, home baking and confectionery ranges in preparation for the summer. The supermarket is overhauling the categories to centre on themes of family treats and sharing, and has highlighted desserts as an area for improvement to better compete with ranges at Waitrose and M&S, reported The Grocer. The supermarket has claimed this week it has become the world’s biggest retailer of Fairtrade products after hitting sales of £218m in the past year.

M&S has today announced it will launch a new home energy services division, offering energy advice, renewable energy solutions such as solar panels and energy-efficient heating, among other products. The first of the services, offering home insulation, will launch this week.

Tesco has launched a ‘manager’s special’ promotion in some of its larger stores that has been described as a ‘jumble sale’, according to The Grocer. The supermarket is selling discounted items such as clothing, kitchen appliances and homeware in special crates ahead of its financial year-end this month.

Asda has unveiled plans to overhaul its online customer magazine asdamagazine.com to function as a stand-alone publication, rather than replicating the store’s printed magazine, in the site’s first major revamp since its 2008 launch. The new website’s aim is to be more accessible to its core audience of 35- to 44-year-old mums.

Mothercare and Boots have signed a deal under which the children’s retailer will launch a range of clothes in Boots stores around the UK. The as yet un-named brand is due to launch in the autumn.

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