Tesco buys food wholesaler | UK food sales fall sharply

Germany: Rewe first major grocer to launch recipe box delivery service -
Following the success of start ups like HelloFresh, Rewe has launched its own meal kit delivery service in Germany. A number of similar start ups have also since entered the German market including Kochhaus and Kochzauber, but Rewe is the first major grocery retailer to introduce the service. (igd.com)

US: Publix makes progress on Virginia expansion
More Martin’s Food Markets grocery stores are in the pipeline to be converted to Publix Super Markets Inc. locations, according to building permits issued in Colonial Heights and Henrico and Chesterfield counties. Publix is buying and converting 10 area Martin’s stores to Publix stores. (richmond.com)

Iceberg prices rises in UK supermarkets
Prices of iceberg lettuce are on rise in the UK. Sainsbury’s and Aldi have decided to increase the prices of US-grown iceberg lettuce following in the footsteps of Asda, which was the first major supermarket to hike the prices for iceberg, saying this was the “worst supply situation in the UK in decades”. (internationalsupermarketnews.com)

UK: Morrisons partners with food sharing app to cut food waste
Morrisons is partnering with food sharing app Olio to handle food wastage in its south London stores. The supermarket would donate surplus food from its Walworth Road, Southwark store branch to the Olio, which would redistribute it to the community. (internationalsupermarketnews.com)

Farmers furious at SuperValu 'stunt' which gives away free carrots and potatoes
The Irish Farmers Association (IFA) has accused SuperValu of acting “unethically” with one of their special offers, which gives customers 2kg of potatoes and 850g of carrots for free when they buy a round roast. The beef in question is already promoted at a discounted price, and the IFA believes it is another example of why political intervention is needed to ensure farmers are getting a “fair share” of the consumer price. Please, click here to read more at thejournal.ie.

Tesco buys Wholesaler Booker
Tesco Plc agreed to buy Booker Group Plc, a British food wholesaler that also operates convenience stores, for about 3.7bn pounds ($4.6bn) as Chief Executive Officer Dave Lewis makes the grocer’s biggest-ever deal to check the encroachment of discounters.

“The deal will give Tesco more bargaining power with suppliers and a huge slice of the retail convenience market,” Bryan Roberts, an analyst at TCC Global, said by phone. “It’s a game-changing deal that’s completely from left field.”

Lewis is expanding Tesco’s convenience-food business and gaining more buying power as discounters Aldi and Lidl sap traditional grocers’ market share. Tesco would capture about 30% of the U.K. convenience-food market, combining its One Stop chain with Budgens, Londis and Premier, which are owned by Booker, according to Charles Allen, an analyst at Bloomberg Intelligence. That raises the likelihood of a long review by the U.K.’s Competition and Markets Authority. (Bloomberg)

UK grocery sales drops almost 10%
British retail sales fell unexpectedly in January, dragged down by the biggest decline in groceries sales since 2004, an industry survey showed on Thursday. The Confederation of British Industry's monthly retail sales balance fell to -8 from +35 in January - the biggest one-month drop in the index since records dating back to 1983, and representing a small outright fall in sales volumes. "This month's decline was mostly driven by falling food sales and seems set to be short-lived, with retailers expecting sales to return next month," CBI economist Anna Leach said. (Reuters)

Russia: Magnit posts 15% drop in Q4 earnings
Russia's biggest food retailer Magnit reported on Friday a 15% drop in its fourth-quarter net profit. It's Q4 net income totalled 13.4bn roubles ($222m), down 15% from 15.8bn roubles in Q4 2015. The retailer's FY 2016 net income amounted to 54.4bn roubles, down around 8% from 59.1bn roubles in 2015. Magnit's revenue was up 13% in 2016 at 1.1 trillion roubles. (Reuters)

US: Walmart offers organic foodservice
Walmart is working with ‘Grown’, an organic fast-food concept, which opened in the Miami area last year. Offering a range of breakfast items, salads, soups and sandwiches, ‘Grown’ sources from local and sustainable producers with a focus on using better-for-you ingredients. While this is a departure from the national foodservice chains which are typically part of the offer at Walmart, this concept is aligned with the interests and needs of the local community. (igd.com)

Nielsen UK: Lidl cheapest, Waitrose the most expensive
A recent study by market analysts Nielsen revealed that many budget chains in the UK are selling everyday items up to £25 cheaper than traditional supermarkets. Nielsen compared around 20 everyday items from the UK supermarkets and budget chains and found many of these items were sold cheaper in budget chains- even cheaper than discounters Aldi and Lidl. (internationalsupermarketnews.com)

Dutch Sligro posts net profit of €73m in 2016
Dutch wholesale and retail grower Sligro has posted a net profit of €73m in full year 2016, a decrease of 9.1% on the previous year. The profit update follows the publication of the group's sales earlier this month, which indicated that Sligro saw sales of €2.81bn last year, an increase of 5.4%. (esmmagazine.com)

A closer look at Asda's main shoppers
Please, click here to read the article.