Victory for independent crisp maker over Tesco

13 April 2012

An upmarket crisp maker today claimed a David versus Goliath-style victory over supermarket giant Tesco.

Will Chase, a Herefordshire-based farmer who produces Tyrrells Potato Chips, said Tesco had been stocking his products - which retail at around 90p - despite his refusal to supply to the chain.

Originally a potato farmer whose margins were wiped out by the supermarkets, Mr Chase turned to making potato chips in 2002 and chose to sell them on the independent market through delicatessens and Waitrose, which actively supports locally produced fine foods.

Due to the growing success of the brand, Mr Chase said Tesco approached him several times with a view to stocking his crisps but when he refused it sourced them through the grey market and was selling them at reduced prices at 60 stores.

Mr Chase last week appointed a lawyer to examine his legal options.

Following an announcement on Friday that Tesco is to boost links with small suppliers, the supermarket has agreed to stop stocking the award-winning potato crisps.

Mr Chase said: "This is a victory of David over Goliath. Although stocking my products with Tesco would significantly grow my business, I felt the quality argument overrode that of quantity. Tesco is keen to buy into the Tyrrells success story, but that is not part of my plan."

Mr Chase said his retail customers had begun to complain that Tesco would undercut the business.

"This is another case of Tesco's bullying tactics. If a company can have so much power over what we can and can't buy, where does one draw the line?" he said.

"I just think it's really bad of them and unethical. Tesco should be leading by example."

A spokeswoman for Tesco said: "Will Chase's comments come as a surprise to us as we have been in discussion with Tyrrells. However, if Tyrrells do not want to sell at Tesco we will of course respect that decision.

"In fact, we are focusing on finding ways of working with small suppliers and bringing more local products to our customers."

On Friday, Tesco pledged to step up the volume of produce it sources locally. The chain is to open five regional buying offices in England in addition to its Hertfordshire HQ, plus a sixth new office in Wales.

Its aim is to provide an easier point of contact for small-scale food and drink producers.

A National Consumer Council report released last week called on Tesco to increase its promotion of UK-sourced in-season vegetables and to raise its game on sustainable sourcing.

Tyrrells has a market value of approximately £35 million and a projected turnover for 2007 of £15 million. Its crisps are created by using older varieties of potato renowned for their flavour.

The firm grows its own potatoes and turn them into potato crisps at Tyrrells Court Farm, Herefordshire.

Tesco is the UK's biggest grocery retailer ahead of rival chains Asda and Sainsbury's. It banked profits of £2.21 billion last year on turnover of £41.8 billion from its worldwide operations.

Earlier this year, Tesco was named the fifth biggest retailer in the world.

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