Free range victim of store wars

Up to 8p a dozen has been knocked off the retail price of free range eggs as leading supermarkets battle for supremacy in the value-for-money stakes.

The discounting started with Tesco when free range eggs were included in a basket of 150 items that were marked down. The retailer knocked 3p off both a pack of six and 10 large and medium free range.

Within days ASDA had responded but took it a step further and reduced pack prices by 4p. Not to be out done, Tesco then knocked pack prices down a further penny. Sainsbury’s and Morrisons took less sweeping action but 3p and 4p respectively has been knocked off a six-egg pack of their large free range.

With producers currently looking to packers to increase prices at farm level, the move is being seen as a significant setback.

“We are extremely disappointed to see free range eggs dragged into the retailers’ price warring,” commented BFREPA chairman Tom Vesey, “particularly at a time when we need to see prices going in the opposite direction.

“It is difficult to make any sense of the strategy. Free range eggs are selling well enough without this type of promotion and I fail to see what Tesco has achieved.

“It is still neck-and-neck on price with its biggest rival. The only difference now is that value has been taken out of the category quite unnecessarily.”

A Tesco spokesperson told the Ranger: “The price on free range eggs has been lowered as we have to work hard to ensure we remain competitive for our customers.

“Retailers and suppliers can only succeed where we work hard together to meet customer need.”

Tesco sells more free range eggs than any other retailer and can boast a 20.1 per cent share of the market. Sainsbury’s is in second place with 15.8 per cent, while ASDA and Morrisons account for 12.5 and 11.3 per cent respectively.