Scotland and the UK cannot afford to lose the Deposit Return Scheme (DRS), Circularity Scotland has said, contradicting contradicted first minister Humza Yousaf's claim the scheme would not be viable if glass is excluded.
Circularity Scotland, the administrator of the country's (DRS), claims the scheme has become “mired” in political differences which have obscured the environmental and financial benefits of DRSs.
Approximately, £300 million has been invested in Scotland’s scheme by drinks producers, retailers and businesses delivering the scheme’s infrastructure. Circularity Scotland also says that more than 650 jobs are being created across its organisation and partners.
Circularity Scotland claims the scheme – which will see a 20p deposit added to drinks containers to be refunded when they are returned empty – is crucial to Scotland’s commitment to climate change targets and will remove “hundreds of millions” of bottles and cans from streets, beaches and green spaces.
The scheme administrator has also insisted that a Scottish pilot DRS, which is then scaled up, is the logical path to delivering “an interoperable pan-UK scheme”.
Circularity Scotland insists the groundwork is in place for the scheme to still go live as planned on 1 March 2024 without glass, and must form the pilot for deposit return elsewhere in the UK.
Chief Executive David Harris, commented: “I am disappointed at how the laudable aims of this scheme and its environmental and business benefits have become the target of negativity and misinformation. The scheme we have built for the people of Scotland brings together proven best practice from around the world.
“The Scottish Government has highlighted that the removal of glass from the scheme changes the economic model of the scheme and the breadth of the environmental benefits it will provide.
“However, there would be a risk to jobs and investment if the scheme does not go ahead for cans and plastic, not to mention the ongoing environmental impact we will see from too many of these containers continuing to end up as waste.
“We therefore ask everyone to get behind the scheme and we will continue to share our knowledge, expertise and innovation with our partners across the UK as they plan and develop their schemes."
Circularity Scotland Ltd. is a not-for-profit private company. Its members include Coca-Cola Europacific Partners, AG Barr, Heineken and Tennent Caledonian. Circularity Scotland says the companies committed to the establishment of a DRS in Scotland to address the litter and environmental issues caused by their packaging.
The statement comes amid reports that Scottish government's DRS could be scrapped after Westminster refused to give the green light for glass to be included.
The DRS will see a surcharge added to the price of single-use products such as glass, which will be refunded when they are recycled. However, the UK government said this would differ too much from their scheme which is set to be rolled out in 2025.
Valeo Foods Group, one of Europe’s leading producers of quality sweets, treats and snacks, has completed its previously announced acquisition of I.D.C. Holding, a major independent producer of quality wafers, biscuits, confectionary and chocolate in Central and Eastern Europe.
Valeo Foods Group said I.D.C. Holding will be a “transformative addition” to its expanding portfolio of leading food brands that include Rowse, Kettle, Jacob's, Barratt and Balconi, and would form the cornerstone for its operations in the fast-growing Eastern European market.
“We are delighted to complete this acquisition and welcome the team to Valeo Foods Group. The acquisition of I.D.C. Holding introduces complementary brands and opens the door to significantly strengthening our position in the Central and Eastern European market and solidifying our leading position with our international retail partners,” commented Ronald Kers, Valeo Foods Group chief executive.
"We are confident our market strategies will drive profitable growth through enhanced distribution, greater penetration and a cost-efficient supply chain. We expect the strength of our combined organisations to create value for years to come. With I.D.C. Holding joining Valeo Foods Group we can continue to build on our solid foundation underpinned by market leading brands, operational excellence and a strategic focus on becoming the undisputed sweet treats champion of Europe.”
First established over a century ago, I.D.C. Holding is a major manufacturer of high-quality sweets products in Slovakia with a turnover of almost €200 million annually. The portfolio includes traditional and iconic brands such as Horalky, Mila, Lina, Kávenky, Goralki, Moments, Verbena and many others. The group employs more than 1,150 people across three production sites located in Slovakia and three subsidiaries in Czech, Hungary and Poland.
Food inflation remained stable last month though experts are warning that with a series of price pressures on the horizon, shop price deflation is likely to become a thing of the past.
According to figures released by British Retail Consortium (BRC) on Thursday (9), shop price deflation was 1.0 per cent in December, down from deflation of 0.6 per cent in the previous month. This is below the 3-month average rate of -0.8 per cent. Shop price annual growth remained at its lowest rate since August 2021.
Non-Food remained in deflation at -2.4 per cent in December.
Food inflation was unchanged at 1.8 per cent in December. This is in line with the 3-month average rate of 1.8 per cent. The annual rate has eased considerably since the start of the year and inflation remained at its lowest rate since December 2021.
Fresh Food inflation was unchanged in December, at 1.2 per cent. This is slightly above the 3-month average rate of 1.1 per cent. Inflation was its lowest since November 2021.
Ambient Food inflation edged up to 2.8 per cent in December, from 2.7 per cent in November. This is in line with the 3-month average rate of 2.8 per cent and remained at its lowest since February 2022.
Commenting on the figures, Helen Dickinson, Chief Executive of the BRC, said, “Retailers discounted heavily for Black Friday this year as they attempted to make up for weaker sales earlier in the year.
"However, the later Black Friday timing brought many of the non-food discounts into the measurement period, making non-food prices look more deflationary than the underlying trend. With food inflation bottoming out at 1.8%, and many price pressures on the horizon, shop price deflation is likely to become a thing of the past.
“As retailers battle the £7 billion of increased costs in 2025 from the Budget, including higher employer NI, National Living Wage, and new packaging levies, there is little hope of prices going anywhere but up.
"Modelling by the BRC and retail CFOs suggest food prices will rise by an average of 4.2 per cent in the latter half of the year, while Non-food will return firmly to inflation.
"Government can still take steps to mitigate these price pressures, and it must ensure that its proposed reforms to business rates do not result in any stores paying more in rates than they do already.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, added, “During December, shoppers benefited from both lower inflation than last year and bigger discounts as both food and non-food retailers were keen to drive sales after a slow start to the quarter.
"However, higher household costs are unlikely to dissipate anytime soon so retailers will need to carefully manage any inflationary pressure in the months ahead.”
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People walk pass a Christmas tree as they exit a store in Manchester, northern England on December 16, 2024.
Photo by Paul ELLIS / AFP) (Photo by PAUL ELLIS/AFP via Getty Images
Shares in Britain's Marks & Spencer and other retailers fell on Thursday, with £2 billion ($2.45 billion) wiped off the sector, as concern about ebbing consumer confidence and economic weakness overshadowed healthy Christmas trading.
Retailers, already facing weak consumer sentiment, are bracing for higher costs from April, when employer taxes and the minimum wage are set to rise.
The economic outlook has been clouded by a leap in Britain's government borrowing costs in recent days that adds to pressure on government finances and has prompted analyst warnings that further tax rises could be needed.
With inflation also forecast to tick up, retailers anticipate a tough year.
"There is that cautious customer confidence out there," M&S chief executive Stuart Machin told reporters, after announcing the group had delivered the highest food sales over the lucrative Christmas period on the UK high street.
M&S reported above-expectations growth of 8.9 per cent in food sales and 1.9 per cent in clothing, home and beauty sales, but the retailer's shares fell 6.5 per cent. Tesco, the country's biggest supermarket group, posted a 4.1 per cent rise in sales, while its shares traded down 1.3 per cent.
"The year ahead won't be all smooth sailing for the retail giants, as the sector gears up to battle imminent tax hikes," Hargreaves Lansdown equity analyst Matt Britzman said.
While those two retailers were helped by booming grocery sales, other categories struggled.
Growth at food-on-the-go specialist Greggs slowed in the final months of 2024 and discounter B&M posted a fall in underlying sales of 2.8 per cent, sending the stocks down by 10 per cent and 12 per cent respectively.
While retailers fell, Britain's globally focused blue-chip index .FTSE traded higher at 0.5 per cent.
Challenges continue
Greggs Chief Executive Roisin Currie said consumers were cautious about spending.
"It's been a challenging second half in 2024. I think you have to make some assumptions that that continues in 2025," she told Reuters.
Greggs had performed well in recent years as its value sausage rolls and steak bakes gained popularity, but its underlying sales growth fell to 2.5 per cent in the final quarter of 2024, down from 5 per cent in the previous period.
Next, the UK's biggest clothing retailer by market capitalisation, on Tuesday warned sales growth would slow in its 2025/26 year as the impact of the government's tax hike begins to hit employment levels and raise prices.
Ken Murphy, the boss of Tesco, was more sanguine.
Although consumers who "really celebrated over Christmas" would be more value-focused in January, that was always the case at the beginning of the year, he said.
After the pandemic, a supply chain crisis, and high levels of commodity and energy inflation, Murphy said Tesco, which is forecasting 250 million pounds of additional costs from the employer tax hikes, was used to handling rising costs.
Marks & Spencer's chief executive said on Thursday he would work to mitigate higher costs and consumer caution in the months ahead, even after the retailer delivered the best results on the UK high street for the all-important Christmas season.
M&S shares, which have risen more than 30 per cent in the last 12 months, on Thursday fell 5 per cent, despite the better-than-expected 8.9 per cent rise in food sales.
The increase, it said, made it the top performing store-based grocery retailer at Christmas, the most profitable time of year for the sector.
Chief executive Stuart Machin said there was "much within the group's control" to offset headwinds that all retailers face this year, including increases in taxes and wage costs from April.
Already, he said M&S had carried the momentum from a strong trading performance throughout 2024 into Christmas.
"Sales records were broken across the business, with Food recording its biggest day and Clothing, Home & Beauty online its biggest week, but we're not complacent - as a growth business it's our job to break records," he said.
Tesco, Britain's biggest food retailer, reported a 4.1 per cent rise in underlying Christmas sales on Thursday.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said M&S and Tesco had both pointed to booming food sales.
"But the year ahead won’t be all smooth sailing for the retail giants, as the sector gears up to battle imminent tax hikes," he said.
M&S grew sales in clothing, home and beauty by 1.9 per cent, outperforming a wider market decline, helped by demand for velvet party wear and its best-selling denim and knitwear categories.
The 141-year-old company gained about 0.5 percentage points in clothing, taking its share to around 11 per cent, Machin said.
Analysts had expected the company to report a 7.8 per cent rise in food sales and a 0.7 per cent rise in clothing and home sales for the 13 weeks to Dec. 28, according to a company-compiled consensus.
M&S said in November it expected a £120 million headwind from higher taxes and wage costs from April.
(Reuters)
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Tesco reveals shop management changes, impacting thousand of jobs
Tesco reveals shop management changes, impacting thousand of jobs
Tesco has recorded its “biggest ever Christmas”, with the UK’s largest supermarket chain landing its biggest share of the festive shopping trolley since 2016.
The grocer on Thursday (9) revealed that sales at established UK stores rose 4 per cent in the six weeks to 4 January, with fresh food performing particularly strongly and clothing and homeware sales also up.
Tesco now controls 28.5 per cent of the grocery market and gained share from premium and discounter rivals over the 12 weeks to 29 December, according to the analysts Kantar.
Tesco added that Booker saw a core retail growth of +1.3 per cent as its symbol brands continue to perform well despite a subdued market backdrop. Overall Booker performance reflects continued decline in the tobacco market.
Ken Murphy, Tesco’s Chief Executive, expressed pride in the team's efforts during the Christmas period, highlighting the retailer’s focus on delivering value, quality, and service to all customers, regardless of how they chose to shop.
Murphy noted that Tesco has maintained its position as the UK’s cheapest full-line grocer for over two years while improving product quality across its ranges.
The festive success was supported by an additional 28,000 colleagues, helping to provide exceptional in-store and online experiences for customers. Murphy also extended his gratitude to the entire Tesco team for their hard work and dedication.
Looking ahead to 2025, Tesco remains focused on continuing to offer top-quality products and outstanding shopping experiences to its customers.
Sofie Willmott, Associate Retail Director at GlobalData, offers her view, “Tesco has reported higher sales growth than Aldi over Christmas evidencing how the market leader’s focus on product and service innovation, as well as value for money, has paid off, strengthening its position in the market.
"Despite Aldi opening stores throughout 2024, including 11 new stores in November and December, which will have driven total growth of 3.4% (for the four weeks to 24 December 2024), Tesco achieved better like-for-like growth (for the six weeks to 4 January 2025) of 4.1%, up against strong comparatives.
Tesco continues to outperform the UK food and grocery market constantly improving its proposition to meet shoppers’ needs in whichever way it can, for example, through its online marketplace which launched in June and roll out of Whoosh rapid delivery to more stores.
“UK food sales rose 4.7 per cent driven by volume growth, with sales being particularly strong in fresh food and its Finest range seeing impressive growth of 15.5 per cent as shoppers treated themselves over the festive period.
Willmott added that Tesco is standing out amongst its peers currently, but it must continue evolving in its focus areas, such as product innovation, online and showcasing value, to maintain momentum.