Tesco reports festive organic boom


29 January 2001



Tesco reports festive organic boom

By FWi staff

TESCO says record sales of organic food over the Christmas holiday have prompted a fall in prices for February promotions, reports The Guardian.

The leading supermarket chains performance on organics contrasts with the dismal festive showing by Iceland frozen food stores.

Iceland blamed a sales slump of 5.5% over Christmas, and of 1.5% over the past six months, on a bold switch to organic produce that failed.

Organic regulators said Iceland was unfair to blame organics, pointing out that sales were growing at 40% a year.

Meanwhile, Iceland founder and chairman Malcolm Walker has cut short a holiday in the Indian Ocean to face crisis talks with the companys board over his future.

Mr Walker faces a tough time from analysts and fund managers demanding an explanation his decision to cash in 14 million in shares before Christmas.

He cashed in a large part of his holding weeks ahead of the companys profit warning.

Some newspapers have predicted that Mr Walker could quit this week, though Iceland denies he will be forced to go.

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