Tesco accused of breaching trust (again) as fake farm brands drive revival
21st Oct 2016 / By Alistair Driver
Tesco has been accused of breaching consumers’ trust, after new figures confirmed a return to growth for the retailer on the back of its fake farm brands.
After a troubled few years, during which the UK’s biggest supermarket chain has been hit by scandal and falling profitability under pressure from the discounters, Tesco increased its sales by 1.3 per cent for the 12 weeks ending October 9. This was its first sign of upward growth since March 2015.
The latest grocery share figures from Kantar Worldpanel show Tesco has grown faster than the overall market, where sales increased by 0.8 per cent on last year.
The retailer attracted a further 228,000 shoppers to help its market share grow to 28.2 per cent – its first year-on-year market share gain since 2011.
At the heart of its revival has been the introduction of its fake farm brands, such as Woodside Farm pork products.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Foods including ready meals and produce have been among the fastest growing areas at Tesco, helped by its ‘Farm Brands’ but also its standard own label lines.”
Farmers have been expressing anger at the brands ever since Tesco, which is not alone in using this type of marketing strategy, introduced them earlier this year.
The brands appear to suggest the products come from traditional British farms, with names like Woodside, when in reality they could have been sourced from anywhere in the world.
Yorkshire pig farmer and former NPA chairman Richard Longthorp said Tesco appeared to have forgotten the lessons about trust it should have learned from the horsemeat scandal.
Richard said: “I thought my memory was bad but clearly the memory of the people at Tesco must be somewhat worse – or they were being somewhat disingenuous back in 2013. Remember Horsegate?
“It wasn’t really about horsemeat. It was about TRUST!
“I seem to recall Tesco and other retailers being aghast at what had happened and how TRUST had been breached and must never be allowed to happen again.
“So what are they doing now? They are using tertiary brands (aka flags of convenience) such as ‘Woodside Farms’, to trick their customers into thinking that the meat they are buying is British. Well there can’t be that many pig farms in Denmark or Holland called “Woodside” can there?
“Strange way to try and gain customer’s trust!”
Despite the flak it is receiving from across the farming sector, including complaints to Trading Standards, Tesco has stood resolutely behind its fake farm brands. Which is no surprise, given the role they are palying in its recent success.
A Tesco spokesman acknowledged that the products sold under the brand come from ‘a range of countries’ but said:
“Every product is sourced from a selection of farms and growers - some are small, family-run farms while others are of a larger scale.
“Tesco customers are among the savviest in the country and they understand that one farm could not possibly supply Tesco given our scale and the vast range of products that they want to buy from us.
“Every product is clearly labelled with its country of origin and the Union Jack is prominently displayed on all British produce."