Tesco is urging its suppliers to make healthy products cheaper, as some customers struggle to afford essentials like fruit and veg amid the cost-of-living crisis.
According to The Grocer, the UK’s largest retailer is putting pressure on suppliers to set targets for reformulation if they had not already done so, in line with its pledge for 65% of its sales to be ‘healthy’ by 2025.
Tesco has already promised to remove 100 billion calories from its own-label line-up over the next two years, but now it wants more of its suppliers to make similar commitments.
The news comes a month after Tesco said it would continue with a ban on HFSS multibuy promotions, including bogofs, despite the government’s delay in introducing a ban on such tactics.
A Tesco spokeswoman said the range review planned to encourage innovation from suppliers to make food healthier, as well as hitting Tesco’s environmental targets.
“Our shared objectives for the review are to continue to deliver great availability and quality, at the same time as maintaining our focus on value, health and sustainability,” the spokeswoman told The Grocer.
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Founder of Sentinel Management Consultants, David Sables said: ”Tesco has broached this subject before but I believe they now plan to use this as a key driver to force down prices.
“They know they have a lot of support from the public and powerful shareholder interests who have been pushing retailers to go further on health despite government backtracks.”
Sables concluded: “The fact is, it doesn’t really matter what the government says about HFSS promotions and that sort of thing – if Tesco starts demanding moves on health, suppliers are going to find it very difficult to resist.”
Most recently, Tesco demanded that its suppliers pass on cost savings, as it aims to cut prices for customers faster than its rivals.
