Asda and Tesco price cuts could affect manufacturers

Price cuts of more than £500m announced by Tesco and Asda last week could affect retailers such as Sainsbury’s and Morrisons if they tried to follow suit, according to analysts.

With rising input costs, food manufacturers such as Northern and Premier Foods faced the risk of not recovering increases from the market.

But dairy processors should not be affected, despite Asda discounting its own-label cheddar, analysts said.


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